Japan’s Big Three Unveil Ocean Network Express
The new joint venture container shipping entity of Japan’s big three carriers will operate under the tradename Ocean Network Express with its holding company based in Japan and an operating company incorporated in Singapore.
The three carriers, K Line, MOL and NYK, made a joint announcement on Wednesday updating their joint venture trade name and location of their merged container shipping business, MANA correspondent reported.
Singapore will also be the regional headquarters of the operating company, in addition to offices in Hong Kong, London in the UK, Richmond in the US and Sao Paulo in Brazil.
In March this year, the Competition Commission of Singapore (CCS) gave the nod to the proposed joint venture of the three Japanese lines.
“The move will allow Ocean Network Express to better meet customers’ needs by providing high quality, competitive services through the consolidation and enhancement of the three companies’ global network and service structures,” the joint statement said.
K Line, MOL and NYK said back then that the decision to integrate came on the back of low oil prices, sluggish cargo demand, oversupply of trade capacity, and container freight rates at historic lows.